Section 234E – Late filing of TDS Statement

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Intimation u/s 200A of the Income TaxAct, 1961 intimating an outstanding demand for the relevant quarters, including demand under section 234E towards Fee for delayed filing of TDS Statement(s), have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement of the deductors.

We would hereby like to draw your attention towards the provisions of section 234E of the Act, which reads as follows:

Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)

o    Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time
prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

o    The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.

o    The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

o    The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.

You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2)of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging thechallan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed.

How to pay the demand:

The following steps shall help you analyze and pay the demand:

o    Download the Justification Report from TRACES portal to view your latest outstanding demand.

o    On downloading the Justification Report.Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available

o    Download the Conso File from Traces portal.

o    In case of payment towards late filing fee, please Tag the challan towards the payment, in the“Fee” column” (Column Number 305 for 24Q, 404 for 26Q, 706 for 26Q) using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to generate the FVU.

o    Submit the Correction Statement at TIN Facilitation Centre.

o    The demand can also be paid by using the Online Correction facility.